Economic Growth Moderate Says Federal Reserve Report

Economic Growth Moderate Says Federal Reserve Report

Article excerpt

WASHINGTON (AP) - The economy grew at a moderate, sustainable pace
over the past three months, the Federal Reserve said in a report
Wednesday which indicated the central bank may no longer feel the
need to push interest rates higher.

The survey of economic conditions presented a picture of an
economy that was slowing in line with efforts by the central bank
over the past year to dampen demand by pushing interest rates
higher.

Some economists have raised fears that the Fed's efforts to
fight inflation by pushing interest rates up could topple the country
into another recession.

But the Fed saw no evidence of a dangerous slowdown in any
sector of the economy, according to the comments submitted by the
Fed's 12 regional banks.

Many analysts believe that the Fed, which was aggressively
pushing interest rates higher in late December and January, has now
stopped tightening to await the results of its earlier
inflation-fighting efforts. …